Fixed Assets - Issues - I
I would like to share some of scenarios in the Fixed Assets & root causes for the same.
Scenario 1: You have posted Goods Receipt from Supplier ( GSR ) but you see that the postings is not resulting in the creation of the Individual Material or Fixed Asset.
For root cause, check the Unposted source document for the error message but if the GSR has financial postings then also you do not find any Fixed Asset Created then, Issue could be that the Account Assignment in the Purchase Order is CC - Cost Center and during the creation of GSR you missed to create New Individual material
May be now you can cancel the posted GSR and create the new GSR and make sure you click on the button 'new individual material' if this posting should result in the creation of Fixed Assets ( provided you ensured the threshold amount and other pre-requisites are met )
Scenario 2: In the Procurement Process to create Fixed Asset, PO Price and Invoice Price is Different and invoice is posted with higher value and also discount is given when payment is made, You have performed GR/IR Clearing run which posted the difference of GSR & INV price to the tab Purchase Price Difference & Payment difference
In the Fixed Asset
System Behavior: The Invoice Price difference ( which is not same as PO Price ) will be added back to the Fixed Asset as the actual acquisition cost & any payment discounts for the invoice will be deducted from the Fixed Asset Acquisition value.
Please note: Exchange rate differences resulting from GR/IR Clearing run cannot be posted to fixed asset account but need to be posted to Profit or Loss Account.
Scenario: 3 If the Purchase order is already closed in case you want to further post some supplier invoices to post to the same fixed asset
Use the Same Individual Material ID of the fixed asset in question.
Instead of selecting New IMAT you should select from the drop down list and select the existing IMAT.
Scenario: 4 How to change the Fixed Asset Class of already created Asset
For only changing the Asset Class, Pre-requisite is that in the fine-tune activity: Asset Class, Old Asset Class & the New Asset Class that you want to assign to fixed asset should share common ADG, then only the change will be possible, else system gives the error message : Choose fixed asset class with same ADG
for the above two asset class, system will allow you to change between the asset classes since they share a common ADG, in the below change we intend to change to a Asset Class which does not share common ADG, so system will not allowing it
Reason being, If you change Asset Class with different ADG, further depreciation postings will be made based on the new determined G/L Account and its not allowed for same fixed asset posting depreciation with different G/L Accounts.
Scenario 5: Goods Service Receipt is released status and asset is not created
First Step to perform: Go to General Ledger work center > Source Documents > View
Root Cause: Go to the fine-tune activity - Asset Class
Main the depreciation method, then select the unposted GSR > Actions > Post Business Transaction > and the Asset will be created once it is posted.
Scenario 6 : Unable to perform Manual Posting - Complete Transfer of Individual Material due to errors
An error occurred during depreciation calculation for asset abc
Asset abc val.view xx. Acquisition cost negative
Error occurred while determining values to be posted for fixed asset
This error is due to the Depreciation Methods in use in both the Source & Target Assets
In simple, For the target asset, system is trying to calculate depreciation from a date which is before its capitalization date which is about to get it from Manual Posting - Complete transfer of Individual Material, For Transfer in the method LSTL, as per the period control key, it is from start of the year and at the start of the year the Target asset is not capitalized, so when the asset itself doesn't exist and no asset value on a particular date and we try to depreciate the asset on top of it, the value turns Negative and which is not allowed, so system is giving the above error.
You can choose your depreciation methods which does not lead to any conflicts in the calculation of depreciation, then system will allow for transfers, in the below sample we just tried to adjust the depreciation start dates only and it works but not necessary that you need to change the dep start date but you can also change the depreciation methods if its valid in your case to 0000 = No automatic depreciations.
In sender Asset, the Depreciation start dates were changed.
Receiver Asset also the depreciation start dates adjusted.
since, we adjusted the start dates, there is no conflict in the depreciation calculation, hence the transfer posting went through and the source asset is retired and the target asset got capitalized. Only when there is no conflict between the source & target interm's of depreciation calculation, then system will allow for transfer posting.
Choose your depreciation method & start dates accordingly, else system will not allow for transfer.
Scenario : Unable to cancel the Supplier Invoice - due to error Asset ABC. val view. Acquisition Cost Negative
Process Flow for this error : Supplier invoice posted -> Fixed Asset Created -> Paid Supplier Invoice with cash discount -> Fixed Asset values tab ->Sub-tab Journal, you will notice a line for source document type [ Payment ] which is updated with negative amount ( cash discount ), since this payment lead to the reduce of the book value of the asset. Now when you are cancelling the invoice itself system will try to cancel with entire invoice value but the cash discount lead to the reduction in value, so we are getting this Acquisition cost negative error.
So successful post the cancellation invoice from un posted source documents, You need to cancel the payment ( by clicking on the clearing id->view all-> click on ->Reset Clearing ) then come to the Un Posted documents view and select this cancellation invoice -> Actions -> Post Business Transaction.
posting may look like the above, Book Value becomes zero & asset status remains [ Capitalized ]
This is expected behavior even with the book value zero, the asset still shows capitalized as the book value zero did not result from normal asset retirement with the useful life.
For this transaction, we have manually set the date and immediately the status of the fixed asset turned as 'Retired'
Scenario 7: GR/IR Clearing Run errors: Individual Material only assigned to retired fixed assets
Goods and Receipt is posted and the Fixed Asset is capitalized and you posted supplier invoice with different amount and expected some price differences amount to be posted in the fixed asset as acquisition cost. You have executed GR/IR Clearing run
->GR/IR Clearing should have been performed before scrapping of the asset
-> Reverse the posting which has lead to the retirement of the asset
->Perform GR/IR Clearing
->Scrap the asset
Reverse the above entry : 523 ( which was created from -> manual posting -> complete scrapping )
->Refresh & check the fixed asset status, It will be capitalized
->Execute GR/IR Clearing and now the difference between the Invoice value & PO/GSR will be added to the Fixed Asset Acquisition value
Do not scrap any asset that is not completely capitalized, That means if you are going to scrap an asset purchased in the current month, you must perform the GR/IR Clearing run for the corresponding purchase order before scrapping.
Scenario 8: You have configured the asset valuation views in such a way that a negative value is not permitted for the net book value of assets,
You have posted a supplier invoice which is resulted in the creation of the fixed asset and later you have performed depreciation as well, Now when you cancel the supplier invoice, you notice that depreciation amount is not canceled. Schedule fixed asset report shows the net book value in negative.
when the invoice is canceled then you see in the below that the depreciation amount sill not canceled.
Report shows the net book value to negative.
When the acquisition is cancelled, so should the depreciation be.But, for this you need to trigger the depreciation run again for this asset and with this new depreciation run, already posted depreciation amount will be reversed automatically.
Also now if you see the report again there is no book value for this asset anymore
It is not that you have posted negative book value but the amount stays till the time you perform the subsequent depreciation run which will remove the posted depreciation since the acquisition value itself is canceled.
Please mention the scenario number and your query if you have any.